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Avoiding Job and Work at Home Scams

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Direct Link To This Post Topic: Avoiding Job and Work at Home Scams
    Posted: Nov/09/2009 at 11:04am
Work at Home Scams - Avoiding Job and Work at Home Scams

One of the questions I get asked most often is how to tell whether a work from home job posting is a scam or a legitimate job. There are warning flags. In addition, there are sites that can help you determine what's a real work at home job and what isn't.

Scams can also be an issue when looking for jobs that don't involve working at home. Job sites try to police the listings, but, it's hard to catch all the bad listings in a timely manner. Be careful when reviewing postings to make sure that you're not taken advantage of by unscrupulous job posters.

Check Out the Job Listings
If it isn't listed in the job posting, find out if there's a salary or if you're paid on commission. For work at home jobs, ask how often are you paid and how you are paid. Ask what equipment (hardware / software) you need to provide.

You Won't Get Rich Quick (Really)
Avoid listings that guarantee you wealth, financial success, or that will help you get rich fast. Stay clear of listings that offer you high income for part-time hours. They will do none of the above.

Hang on to Your Money
Do not send money! Legitimate employers don't charge to hire you or to get you started. Don't send money for work at home directories or start-up kits.

Check References
Ask for references if you're not sure about the company's legitimacy. Request a list of other employees or contractors to find out how this has worked for them. Then contact the references to ask how this is working out. If the company isn't willing to provide references (names, email addresses and phone numbers) do not consider the opportunity.

Think Twice
If it sounds too good to be true, you can be sure it is! Also, read any "offers" you get very carefully. One candidate for employment got a very detailed job offer from an employer. The only problem was that she hadn't applied for the job and buried deep within the lines was a request for her bank account information, so the employer could pay her. It was a scam, of course, but with some of the well-written ones it can be hard to tell.

Work at Home Jobs To Avoid

Assembly Jobs - No, you can't make lots of money assembling craft kits or any other type of kits. You can waste money on a package to get you started though.

Data Entry Jobs - You'll see lots of listings for data entry jobs. They are usually either positions posting ads or a sales pitch for a kit that will get you started.

Multi-Level Marketing (MLM) which involves recruiting new people, and more new people, to sell the product. If all you are doing is trying to find more people to do what you're doing, keep in mind that there are probably thousands of other people attempting to do the same thing. Most of them aren't getting rich. Also note, that MLM isn't a job with a paycheck - it's starting a business, with no guarantees.

Online Businesses - Do you want to start your own online business and get rich? Be very wary of these type of ads too. What you will do is end up paying for a guide to working at home which duplicates information you can find free.

Posting Ads - There are lots of ads saying workers are needed to post ads on online bulletin boards and forums. You don't get paid to post, rather you may get paid if other people sign-up.

Processing Claims - In order to get "hired" you'll need to buy equipment, software and pay for training.

Stuffing Envelopes - Believe it, or not, there are still people saying that you can earn $3 or $4 per envelope to stuff them. You can't. All major companies have postage machines which stuff, sort and meter mail.

The winner in the scam contest are the sites that offer to sell provide you with information on only legitimate work at home jobs - for a nominal fee, of course. Don't do it!

How to Find Out

How do you find out if the posting you are responding to is legitimate or a scam? Check our Work at Home Scam information to research companies before you apply.

More Employment Scams
Typical employment, job search and career related scams, how to avoid scams, and what to do if you're been scammed.

(Courtesy of:

Edited by skhatoon - Nov/09/2009 at 11:09am
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Direct Link To This Post Posted: Nov/09/2009 at 11:10am
How to Avoid 5 Common Work At Home Scams in Canada
These Work at Home Scams Aren’t Work at Home Opportunities
So you want to start a home business and work at home. Millions of people do. Unfortunately, there are also millions of people working at work at home scams.

You’ve seen the ads – they’re in your newspapers, plastered across the ‘Net, in your email. “Work at home! Make $3000 a week!” But the only ones who make money off these supposed work at home or home business opportunities are the scamsters. All you get is a dent in your pocketbook and disappointment.

In case you’re tempted, here’s how to recognize and avoid some of the most common work at home scams.

1. Envelope Stuffing Work at Home Scam

The pitch: You can learn how to earn money stuffing envelopes at home (for a small fee).

For your fee, you’ll likely receive a letter telling you to place that same envelope stuffing ad in newspapers or magazines. You, of course, get to pay for placing the ads. The only way you will earn money is by bilking other people who respond to your work-at-home ad.

2. Assembly or Craft Work at Home Scams

The pitch: You will make good money working at home by making things which the company will then purchase from you.

The way this scam works is that you pay (sometimes thousands of dollars) for materials and equipment upfront. You might have to buy a sewing machine from the company, for instance and/or parts for wdon't likever item you’re assembling. Then you make the items – but the company never does buy them back from you. None of your work is ever “up to standard” according to them.

3. Computer Work Work at Home Scams

The pitch: You will make money working at home doing data entry and word processing tasks. All you have to do to get started is send in a small fee.

If you fall for this work at home scam, what you’ll get is a useless guide to work at home jobs or a disk with generic information on how to run a business and a list of business names. If you bother to contact the businesses listed, you’ll find that they’re either not interested or pay an abysmally low rate.

4. Medical Billing Work at Home Scams

The pitch: There’s a crisis in the health care system and you can make big money by starting a home business providing electronic billing services, providing services such as billing, accounts receivable and electronic insurance claim processing to doctors and dentists.

For your investment of $2000 to $8000, you are promised software, training and technical support. Unfortunately, you are not promised any clients. The FTC (Federal Trade Commission) says,

“Few consumers who purchase a medical billing business opportunity are able to find clients, start a business and generate revenues - let alone recover their investment and earn a substantial income. Competition in the medical billing market is fierce and revolves around a number of large and well-established firms.”

5. MLM-Style Pyramid Scheme Scams

The pitch: You will make big money selling the products or services of a particular company.

The way MLM works is that as a distributor, you earn commissions both on your sales and on the sales of the people you recruit to become distributors.

The problem is that some MLM businesses are just pyramid schemes, frauds where the products and services only exist to make the opportunity look legitimate. The scam is that only the people at the top of the pyramid make money. Everyone else is just a bagholder.

Pyramid schemes are illegal in Canada and in many American states. See Is It MLM or a Pyramid Scheme? for more on how to tell the difference between the two and protect yourself.

These are just five of the most common work at home scams. There are many, many more, often masquerading as business opportunities. Internet-related business opportunities are just the latest flavour of these work at home scams promising big money for little work or investment. Whenever you read a business opportunity or work at home ad, stop and ask yourself:

  • Is the ad vague about what you would actually do but promises big earnings or wealth?
  • Does the ad promise that you will make big money working a few hours a week?
  • Is there a fee for getting more information (either a direct fee or a number for you to call which you will be billed for)?
  • Is there any experience necessary to do the work or start the business?
  • If you express interest, are you pressured to act immediately?

Genuine business opportunites, whether work at home or not, don’t require fees to get further information or use high-pressure sales tactics to try to force you to make a fast decision. If the work at home ad meets any of the above criteria, trash it; it’s just another work at home scam or bogus business opportunity from someone who wants to take your money and run.

If you do become the victim of one of these work at home scams, in Canada contact:

The Canadian Council of Better Business Bureaus. Call 416-644-4936 (Eastern time zone).

The Canadian Competition Bureau. Call toll free 1-800-348-5358.

(Courtesy of:

Edited by skhatoon - Nov/09/2009 at 11:11am
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